Crypto traders saw more than $1.5 billion in bullish wagers liquidated on Monday, triggering a sharp sell-off that hit smaller tokens hardest.

Ether, the second-largest token, slumped as much as 9% to $4,075 as nearly half a billion dollars of leveraged long positions were liquidated, according to data from Coinglass. It was recently 6% lower over 24 hours. Bitcoin, the largest token, declined almost 3% to $111,998 before recovering slightly.

Dogecoin (DOGE) slumped more than 10% to lead losses among major tokens, with Solana's SOL, Cardano's ADA, BNB Chain's BNB and Tron's TRX showing losses of at least 5% in the last 24 hours.

More than 407,000 traders were liquidated over a 24-hour period, Coinglass data show, the highest such losses in recent months. Liquidations occur when leveraged positions are forcibly closed due to a price move beyond a trader’s margin threshold. This typically results in major losses and can trigger cascade effects during volatile moves.

Traders use liquidation data to gauge market sentiment and positioning. Large long liquidations often signal panic bottoms, while short liquidations may precede a squeeze.

Spikes in liquidations also help identify overcrowded trades and potential reversals. When paired with open interest and funding rate data, liquidation metrics can offer strategic entry or exit points, especially in overleveraged markets prone to sudden flushes or rallies.

The wave of liquidations comes against a macro backdrop that remains highly uncertain despite the Federal Reserve’s latest interest-rate cut.

“The market’s trajectory hinges critically on upcoming economic data and Fed signals,” said Nassar Achkar, chief strategy officer at CoinW. “This macro uncertainty is likely to maintain Bitcoin’s dominance, potentially capping the upside for Ethereum and the broader DeFi sector despite their superior yield opportunities.”

Investors are watching U.S. PMI data and jobless claims later this week, Achkar noted, while Powell’s Tuesday speech is expected to steer risk appetite. A dovish tone could ease pressure on altcoins following their sharp losses, but any signal of caution would reinforce the defensive positioning already visible in derivatives markets.

Crypto traders saw more than $1.5 billion in bullish wagers liquidated on Monday, triggering a sharp sell-off that hit smaller tokens hardest.Ether, the second-largest token, slumped as much as 9% to $4,075 as nearly half a billion dollars of leveraged long positions were liquidated, according to data from Coinglass. It was recently 6% lower over 24 hours. Bitcoin, the largest token, declined almost 3% to $111,998 before recovering slightly.Dogecoin (DOGE) slumped more than 10% to lead losses among major tokens, with Solana's SOL, Cardano's ADA, BNB Chain's BNB and Tron's TRX showing losses of at least 5% in the last 24 hours.More than 407,000 traders were liquidated over a 24-hour period, Coinglass data show, the highest such losses in recent months. Liquidations occur when leveraged positions are forcibly closed due to a price move beyond a trader’s margin threshold. This typically results in major losses and can trigger cascade effects during volatile moves.Traders use liquidation data to gauge market sentiment and positioning. Large long liquidations often signal panic bottoms, while short liquidations may precede a squeeze.Spikes in liquidations also help identify overcrowded trades and potential reversals. When paired with open interest and funding rate data, liquidation metrics can offer strategic entry or exit points, especially in overleveraged markets prone to sudden flushes or rallies.The wave of liquidations comes against a macro backdrop that remains highly uncertain despite the Federal Reserve’s latest interest-rate cut. “The market’s trajectory hinges critically on upcoming economic data and Fed signals,” said Nassar Achkar, chief strategy officer at CoinW. “This macro uncertainty is likely to maintain Bitcoin’s dominance, potentially capping the upside for Ethereum and the broader DeFi sector despite their superior yield opportunities.”Investors are watching U.S. PMI data and jobless claims later this week, Achkar noted, while Powell’s Tuesday speech is expected to steer risk appetite. A dovish tone could ease pressure on altcoins following their sharp losses, but any signal of caution would reinforce the defensive positioning already visible in derivatives markets.